The Bank of N.T. Butterfield & Son (NTB) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $62.6 million ($1.53 per share), with core net income at $63.2 million ($1.55 per share), up 11.4% year-over-year.

• Core return on average tangible common equity was 24.1%; return on average common equity was 22.1%.

• Closed the acquisition of Rawlinson & Hunter Guernsey in April 2026, enhancing private trust business scale and capabilities.

• Repurchased 0.8 million shares for $42.4 million and declared a $0.50 per share quarterly dividend.

• Operational efficiency improved, with lower non-interest expenses and a core efficiency ratio of 56.4%.

Financial highlights

• Net interest income was $93.3 million, up $4.0 million year-over-year and $0.7 million sequentially.

• Net interest margin rose to 2.75%, up six basis points from the prior quarter.

• Non-interest income was $62.6 million, up $4.2 million year-over-year but down $3.6 million sequentially.

• Core non-interest expenses decreased 3.4% sequentially to $89.9 million, driven by lower professional services and technology costs.

• Quarterly cash dividend of $0.50 per share announced; 0.8 million shares repurchased for $42.4 million.

Outlook and guidance

• Acquisitions remain a key growth driver, with continued focus on high-quality opportunities in island banking and trust.

• Net interest margin expected to remain broadly stable with a slight positive bias for the rest of the year.

• Core non-interest expenses projected in the $90–$92 million range per quarter, excluding integration costs.

• Anticipates further improvement in AFS OCI by 20% in the next 12 months and 47% in 24 months based on forward rates.

• Expects continued benefit from higher yielding investment securities and stable loan volumes.